Business
Target Hospitality Provides Business Update Highlighting Continued Positive Trends and Corporate Strategy
THE WOODLANDS, Texas--(BUSINESS WIRE)-- Target Hospitality Corp. (“Target Hospitality”, “Target” or the “Company”) (NASDAQ: TH), the largest provider of
About this update from Target Hospitality Corp.
[{"type":"text","content":" THE WOODLANDS, Texas--(BUSINESS WIRE)--\nTarget Hospitality Corp. (“Target Hospitality”, “Target” or the “Company”) (NASDAQ: TH), the largest provider of vertically-integrated specialty hospitality accommodations with premium catering and value-added hospitality services in the U.S., today is providing the following business updates as a result of continued positive trends in its core business.\n\n“As the economic outlook became increasingly uncertain during the second quarter of this year, we took aggressive actions to appropriately position Target to navigate this unprecedented operating environment. We quickly aligned our business to match customer demand, while maintaining a heightened focus on preserving our financial strength. Our second quarter results reflected Target’s ability to execute in a challenging environment and continue to deliver strong financial results, while generating meaningful discretionary cash flow,” stated Brad Archer, President and Chief Executive Officer.\n\n“We have continued to see positive trends in our operating metrics following our second quarter results, including occupancy and utilization. Target’s customer base and contract structure, including exclusivity, have allowed the Company to take advantage of a market that continues to reflect increased demand for our hospitality and accommodation services. Target’s accommodation network has achieved substantial scale within our operating areas, allowing us to reduce capital spending and continue to generate strong margins. This scale has provided the foundation to continue generating meaningful cash flow from operations as we progress into 2021 and over the long-term,” concluded Mr. Archer.\n\nBusiness Update \n\nTarget has continued to see steady improvements in its operating metrics during the third quarter, with the pace of these improvements exceeding expectations. Demand for the Company’s Permian Basin accommodations continues to improve, as customer activity has steadily increased from lows experienced during the second quarter. Target anticipates these trends will continue, at a moderated pace, through the rest of the year and into 2021. In addition, the Company has made progress in renewal discussions for its government services contract and anticipates a positive outcome for a contract renewal, at attractive economics, by the end of 202...